Aviva share price was heavily penalized and appear now in an oversold situation near to a solid support area.

The company has a low valuation with a P/E ratio of 9.42x estimated in 2014 as well as a strong profitability. Analysts covering the stock target on average a 24% appreciation potential on the basis of current prices.

Graphically, the security follows a downward trend in the short term, under the GBp 507 resistance area. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the GBp 463.9 support area currently tested might stop the bearish trend in the short term, and allow a technical rebound.

Therefore, it seems opportune to take a long position on Aviva to target the GBp 483 pivot point then the GBp 507 resistance. Investors should not insist below the GBp 463.9 and a stop-loss order should be placed under this threshold.